H. B. 2491


(By Delegate Walters)
[Introduced February 22, 2001; referred to the
Committee on Banking and Insurance then Finance.]




A BILL to amend and reenact section two, article sixteen, chapter thirty-three of the code of West Virginia, one thousand nine hundred thirty-one, as amended, relating to insurance; group insurance policies.

Be it enacted by the Legislature of West Virginia:
That section two, article sixteen, chapter thirty-three of the code of West Virginia, one thousand nine hundred thirty-one, as amended, be amended and reenacted to read as follows:
ARTICLE 16. GROUP ACCIDENT AND SICKNESS INSURANCE.

§33-16-2. Eligible groups.
Any insurer licensed to transact accident and sickness insurance in this state may issue group accident and sickness policies coming within any of the following classifications:
(a) A policy issued to an employer, who shall be is deemed considered the policyholder, insuring at least ten employees of such the employer, for the benefit of persons other than the employer, and conforming to the following requirements:
(1) If the premium is paid by the employer the group shall comprise all employees or all of any class or classes thereof determined by conditions pertaining to the employment; or
(2) If the premium is paid by the employer and employees jointly, or by the employees, the group shall comprise not less than seventy percent of all employees of the employer or not less than seventy-five percent of all employees of any class or classes thereof determined by conditions pertaining to the employment employees who elect to make the payments;
(3) The term "employee" as used herein shall be is deemed considered to include the officers, managers and employees of the employer, the partners, if the employer is a partnership, the officers, managers, and employees of subsidiary or affiliated corporations of a corporation employer, and the individual proprietors, partners and employees of individuals and firms, the business of which is controlled by the insured employer through stock ownership, contract or otherwise. The term "employer" as used herein may be is deemed considered to include any municipal or governmental corporation, unit, agency or department thereof and the proper officers as such, of any unincorporated municipality or department thereof, as well as private individuals, partnerships and corporations.
(b) A policy issued to an association which has a constitution and bylaws and which has been organized and is maintained in good faith for purposes other than that of obtaining insurance, insuring at least ten members of the association for the benefit of persons other than the association or its officers or trustees. as such
(c) A policy issued to a college, school or other institution of learning or to the head or principal thereof, insuring at least ten students, or students and employees, of such the institution.
(d) A policy issued to or in the name of any volunteer fire department, insuring all of the members of such the department or all of any class or classes thereof against any one or more of the hazards to which they are exposed by reason of such the membership but in each case not less than ten such members.
(e) A policy issued to any person or organization to which a policy of group life insurance may be issued or delivered in this state, to insure any class or classes of individuals that could be insured under such the group life policy.


NOTE: The purpose of this bill is to eliminate the 75% participation requirement currently required for group insurance policies when the policy premium is partly or wholly paid by the employee. The bill also includes technical changes for the purpose of cleaning up language in the code.

Strike-throughs indicate language that would be stricken from the present law, and underscoring indicates new language that would be added.